Discover Will Cut Some Card Benefits in 2018

Discover said it will eliminate five benefits from its lineup of credit cards in 2018 because customers don’t use them enough.

The benefits being discontinued are aimed at shoppers and travelers:

• Extended product warranty, which extends a manufacturer’s warranty for a year

• Purchase protection, which covers newly purchased items if they're stolen or damaged

• Return guarantee, which allows you to return a purchased item if the retailer won’t take it back

• Auto rental coverage, which pays costs not covered by your own insurance in the event of an accident with a rental car

• Flight accident insurance, which covers you if you pay for your ticket with a Discover card

Core features of Discover credit cards, such as reward rates and redemption options, remain unchanged.

The benefits had been under review by the company, and it will eliminate them Feb. 28 “due to prolonged low usage,” Discover said in a statement Dec. 2 after notifying customers.

“We regularly evaluate our cardmember benefits to ensure that we are meeting or exceeding our cardmembers’ current needs and expectations,” the company said. A spokesman declined to elaborate further on why the benefits will be eliminated.

Discover offers several benefits that differentiate it from competitors, including its FICO Credit Scorecard and recently launched Social Security number alerts, as well as what many consider a superior online bonus shopping mall. But some of the discontinued benefits, including product warranty, purchase protection and secondary auto rental insurance, are standard offerings on many cards offered by Visa, MasterCard and American Express.

Discover said it “will continue to offer free benefits that card members use and value the most.” Notably, it is retaining price protection, which refunds the difference if you buy an item and its price drops shortly after.